Question

From December 10, 2009 Reserve Bank of India has decided to reintroduce the ceiling on interest rates that Indian companies pay for external commercial borrowing and shut the special window that allowed companies to buy back foreign currency convertible bonds to reduce debt burden at the height of the global financial crisis. Which among the following is the broad idea behind this move of RBI?
(A)To signal a check on excessive inflows
(B)To signal a check on excessive outflows
(C)To attract the foreign lenders
(D)To repel the foreign lenders
(E)None of them

Answer 1

Heya....

Option A is correct.....

Reserve bank of India on 10 Dec 2009, reintroduce ceiling intrest rates to check on excessive inflows....

These rise in excessive inflows lead to excess demand and it cause high exploitatation of buyers so this act was taken...

Answer 2

heya!!

here is your answer ⬇️⬇️⬇️

option A is the answer.

To siganl a check on excessive inflows.

hope my answer helps you ✌